The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

Looking at President Trump’s proposed tax changes for businesses , P.2

In our last post, we began looking at some of the changes expected to occur with tax reform in the Trump presidency. As we noted, reduction of corporate income tax rate, ending taxing of overseas income returned to the United States, and implementing a border adjustment tax are all reportedly part of Trump’s plan, and these policies will impact many U.S. businesses.

Another change expected to come for businesses is full expensing of business investments. Under this reform, should it pass, businesses would be able to deduct the value of investments in new business the year the investments are made instead of over a longer period of time. The effect of the change is that it will reduce the cost of capital investments.

According to proponents of full expensing, full and immediate deduction of business expenses would have a similar effect to the government investing directly in a potion of the business, and will stimulate economic growth, particularly benefiting business in capital intensive industries.

The policy debate is multifaceted, of course, involving the question of the best way to stimulate the economy and increase employment. Opponents of Trump’s plan argue that full expensing does not make sense when tax rates are low, since lengthening depreciation schedules has traditionally been seen as the way to pay for lower tax rates. If the goal is to stimulate new investments, full expensing would, according to experts, be preferable to tax cuts, but Trump appears to be committed to both. Another question is whether full expensing should be made permanent rather than as a limited economic stimulus.

For businesses, it will be important to pay attention to the changes coming in this area, not only to do proper tax planning, but to ensure compliance with tax rules and regulations. Working with an experienced tax attorney is important to ensure full compliance and to avoid potential liabilities.

No Comments

Leave a comment
Comment Information
Email us for a Response

Talk to an Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Office Location

Payment Cards